interest rate: Is a Mortgage Pre-Approval Letter Necessary to Make an Offer on a House? - 04/25/22 01:01 PM
Do you need a mortgage pre-approval letter to make an offer on a house? You know you need to get your ducks in a row before looking at homes, but does that include securing a pre-approval letter from the bank?
The truth is, getting pre-approved can actually improve your chances of falling into the sellers’ good graces, so you want to get it done as soon as possible in the home-buying process.
So how organized do your financials need to be before you start looking? Let’s take a look, starting with clarifying what a pre-approval letter actually is.
What is a pre-approval letter?
Mortgage pre-approval is assurance from a lender to provide … (3 comments)

interest rate: Homeowners May Be Reluctant to Give Up Low Mortgage Rate - 04/20/22 11:52 AM
About half of homeowners with a mortgage have a rate under 4%. That is significantly below today’s rate of 5%.
Such enticing rates could incentivize homeowners to stay put in their homes longer. They may not want to give up an ultra-low rate—many of whom may have snatched up a rate over recent years that was below 3%.
A recent analysis by Redfin calls out this “lock-in effect” as one factor that may contribute to a decline in home listings moving forward.
The 30-year fixed-rate mortgage averaged 5% last week, the highest rate in more than a decade, according to Freddie Mac. Since the … (2 comments)

interest rate: How Much Home Equity Do I Need For a Mortgage Refinance? - 04/16/22 12:59 PM
With mortgage rates on the rise, the opportunity to save money with a refinance is shrinking, but it can still make sense for some homeowners. When it comes to refinancing a mortgage, though, home equity matters.
How much home equity do I need to refinance my mortgage?
Home equity is the cash value in your home. For instance, if your home is valued at $300,000 and you owe $200,000, your home would have $100,000 of cash value, or equity. If you don’t have enough home equity, private mortgage insurance, or PMI, may be required. This is a type of insurance borrowers pay to protect the … (2 comments)

interest rate: Historical Mortgage Rate Trends: 1970s to 2022 - 04/14/22 12:33 PM
While the mortgage rate you’ll get is determined by specific factors like your credit score, historical mortgage rate trends can give you a sense of how economic conditions influence the rates available on the market today. From the 1970s to present, mortgage rates have risen and fallen, with the current 30-year fixed rate still low, but on the rise.
“After spiking to near 20 percent levels in the early 1980s, mortgage rates — as with interest rates in general — were largely in decline for the better part of the next 40 years as inflation declined and became a non-factor,” says Greg McBride, CFA, … (1 comments)

interest rate: Borrowing Costs Jump as Rates Continue to Increase - 04/03/22 05:55 PM
For the fourth consecutive week, mortgage rates surged, up more than 90 basis points in one month.
Rates have jumped from 3.76% to 4.67% in just March alone, significantly increasing the borrowing costs for buyers, Nadia Evangelou, senior economist and director of forecasting at the National Association of REALTORS®, wrote for the association’s blog.
The monthly payment for a median-priced home with a 30-year fixed-rate mortgage rose more than $170 in March due to higher rates, Evangelou notes.
In the past three months, that amount has been increasing even more. For example, LendingTree offers the following example: A 30-year, fixed-rate mortgage loan worth $300,000 … (0 comments)

interest rate: Some Owners Turn to Cash-Out Refinances - 03/31/22 02:58 PM
Some homeowners are turning to the equity in their current home to fund their next real estate transaction. But the move isn’t without risks.
Most homeowners who bought a home before 2020 have seen rapid appreciation and rising equity in their homes. A cash-out refinance is allowing them to use that equity to help fund their next purchase. They can take out a new mortgage loan for more than what they owe, and then use the cash to buy another property or to make a down payment on a new one.
Cash-out refinances have traditionally been used to pay off debt or fund home … (1 comments)

interest rate: How Much Does it Cost to Refinance Your House? - 03/29/22 08:03 PM
Refinancing your mortgage can lower your interest rate, help shorten your loan term or convert equity into funds you need — but it comes with a price tag. Just like your first mortgage, you’ll need to consider the closing costs.
Why refinance your mortgage?
Simply put, spending some money now can save you more money in the long run — or help you access cash you need for a project right now. Here’s a rundown of some of the main reasons you might want to consider refinancing your mortgage:
You can lower your monthly payment – If you have a fixed-rate mortgage with a rate that’s higher … (1 comments)

interest rate: Who Really, Really Approves Your Loan? - 03/25/22 04:39 PM
‘Approval’ in the mortgage and real estate industries is a term thrown around sometimes a bit too regularly. It’s the stage of a loan application where the terms of the application and submitted documentation meet the requirements to take the loan to its final state, referred to as ‘funding.’
It’s the stage where every loan applicant wants to get to because it one step closer to moving into their new home. There’s a preapproval and then there’s a final approval. The preapproval is a stage where the homebuyers have submitted and application, provided some documentation and have given the lender authorization to … (0 comments)

interest rate: Here's What Does (and Doesn't) Drive Mortgage Rates - 03/22/22 08:06 PM
Mortgage rates moved dramatically throughout the pandemic. In the early phase of the health crisis, mortgage rates plunged to record lows. During the recovery stage, they hit pre-pandemic levels, then kept rising.
But why have rates moved so dramatically? And what drives mortgage rate movements? The answers are complex, but the moves make more sense when you learn which factors drive mortgage rates — and which don’t. Here’s a quick crash course that could save you money on a new mortgage or a refinance.
 1. It (sort of) begins with the Federal Reserve
The Federal Reserve doesn’t set mortgage rates, but the central bank’s decisions definitely … (1 comments)

interest rate: What is a Cash-in Refinance? - 03/13/22 11:21 AM
A cash-in refinance lets you refinance your mortgage into a new loan with a lower principal balance.
When interest rates are low, you may be thinking about refinancing your home mortgage. Refinancing can lower your monthly payments or help you save on interest over the life of the loan.
But lenders typically will only allow borrowers to refinance with a certain amount of home equity. You may not have enough equity if you put down a small down payment or haven’t had your mortgage for long. 
A cash-in refinance can allow you to qualify for refinancing, help you put more money into your home, … (0 comments)

interest rate: What You Need to Know About Discount Points - 03/09/22 05:38 PM
When you're in the process of shopping for a mortgage, your lender may present you with the option of buying discount points. What are points, and should you buy them? Learn how discount points affect your mortgage and when you should consider buying them.
What Are Discount Points
Discount points allow you to pay upfront some of the interest on your home loan, and in exchange, you receive a lower interest rate on your mortgage. You pay your lender a one-time fee for the discount points when you close your loan.
One discount point is equal to 1% of the loan amount (or $1,000 for every $100,000), … (0 comments)

interest rate: Russian Invasion May Impact Mortgage Rates - 03/03/22 12:54 PM
Mortgage rates in the U.S. have risen this year and are expected to continue doing so, but the conflict between Russia and Ukraine could throw a wild card into those projections.
The 30-year fixed-rate mortgage climbed by 37 basis points over the first two full weeks of February, according to Freddie Mac. But last week, as Russia invaded Ukraine, rates dropped to 3.89% for the 30-year fixed-rate mortgage.
“When global investors sense increased uncertainty, there is a ‘flight to safety’ in the U.S. Treasury bonds, which causes their prices to go up, and their yield to go down,” says Odeta Kushi, deputy chief economist at … (0 comments)

interest rate: Mortgage Rates Dip to 3.89% - 02/26/22 09:13 PM
The 30-year fixed-rate mortgage reversed course this week and decreased to an average of 3.89%, Freddie Mac reports. However, with expectations of even higher inflation on the horizon, mortgage rates likely will resume their upward trek over the coming weeks, Nadia Evangelou, senior economist and director of forecasting at the National Association of REALTORS®, notes on the association’s blog.
Despite this week’s decline, mortgage rates have risen by more than a full percentage point over the last six months, says Sam Khater, Freddie Mac’s chief economist. “Overall economic growth remains strong, but rising inflation is already impacting consumer sentiment, which has markedly … (3 comments)

interest rate: Starter Homes More Affordable Than Renting - 02/24/22 01:41 PM
Home prices are rapidly rising, but rental prices are as well, and at a faster pace. In more than half of the nation’s largest U.S. metros, Americans likely will find buying a starter home more affordable than renting, according to a newly released report from realtor.com®.
Median rental prices rose 19.8% year over year in January. That has outpaced monthly starter homeownership costs, despite a very competitive housing market, researchers say. For comparison, the monthly costs of buying a home with up to two bedrooms have seen an 11% year-over-year jump, according to realtor.com®. Meanwhile, apartment costs for all unit sizes continue … (0 comments)

interest rate: Mortgage Rates Nearing 4% - 02/20/22 03:57 PM
Borrowing costs are climbing: The 30-year fixed-rate mortgage rose to a 3.92% average this week, Freddie Mac reports.
“Mortgage rates jumped again due to high inflation and stronger than expected consumer spending,” says Sam Khater, Freddie Mac’s chief economist. “The 30-year fixed-rate mortgage is nearing four percent, reaching highs we have not seen since May 2019. As rates and house prices rise, affordability has become a substantial hurdle for potential home buyers, especially as inflation threatens to place a strain on consumer budgets.”
As of now, however, the rising rates are sparking an urgency rather than a pause among house hunters, Nadia Evangelou, … (1 comments)

interest rate: Our Progress Is Making Home Possible - 02/17/22 10:04 PM
Everything we do at Freddie Mac is in service of our mission — Making Home Possible. Our earnings, increased capital, focus on risk management and committed team served this mission and the nation well in 2021.
We interpret our mission expansively, and our financial results for the year highlight the work we're doing to meet our mission:
Enhancing liquidity within the mortgage and capital markets. Stabilizing the housing market and keeping families in their homes throughout the economic cycle. Working with an array of housing market participants to promote greater access to and supply of affordable and sustainable homes throughout the country. … (0 comments)

interest rate: Loan Application Stop Signs - 02/16/22 07:04 PM
Once your loan application is submitted the application is reviewed “as is.”  This means the information appearing on the application is valid at the time it was completed. If things change while your loan is being processed, there can be some delays as the current information is documented and verified. To make sure your loan is processed and approved on time, avoid these actions.
Switching jobs.
One of the primary functions’ lenders perform is making sure there is enough monthly income in an account that can handle the payments. This is typically performed by reviewing copies of the most recent paycheck stubs covering … (1 comments)

interest rate: Should Inflation Change Your Homebuying Plans? - 02/01/22 08:26 PM
Inflation has reached a 40-year high. What does that mean for you as you consider whether or not to buy a home in 2022?
You've likely noticed that life grew more expensive in 2021. A combination of government aid, demand for goods and bottlenecked supply chains has increased the cost of everyday items, including housing. This is known as inflation. When it occurs, it generally means your hard-earned dollars don't stretch quite as far as they used to.
In 2021, inflation rose to a degree last seen in the 1980s. Some of the largest and most necessary living expenses cost 7.0% more at the end … (0 comments)

interest rate: First-time Homebuyer Guide: 10 Steps to Get You Started - 01/26/22 07:27 PM
Avoid mistakes by carefully evaluating your finances and shopping around for the right mortgage.
The first time you try something, you’re bound to make mistakes. But mistakes buying your first house can cost you dearly for years to come. Fortunately, you don’t have to go it alone. 
First-time homebuyers have access to a wide range of programs, incentives, and experts to help navigate the homebuying process. Housing counselors through the U.S. Department of Housing and Urban Development can guide you, and most state housing finance agencies offer down payment assistance and homebuyer education to help you get into your first house. 
As you get started, this step-by-step … (0 comments)

interest rate: Rising Mortgage Rates Squeeze Both Homeowners and Buyers - 01/23/22 09:28 PM
Mortgage rates surged again this week on inflation concerns, hitting the highest point in 22 months that sent homebuyers scrambling to lock in rates.
Many homeowners, on the other hand, face a shrinking opportunity to refinance.
The rate on the 30-year fixed rate mortgage – the most common home loan for buyers – increased to 3.56% from 3.45% last week, according to Freddie Mac. That is the highest rate since the third week of March 2020. The 15-year fixed-rate mortgage, a popular refinance choice, similarly increased to 2.79% from 2.62%.
“Mortgage rates moved up again as the 10-year U.S. Treasury yield rose and financial markets … (1 comments)

 
Jackie A. Graves, President (ChangeMyRate.com® A Mortgage Corporation)

Jackie A. Graves

President

Long Beach, CA

More about me…

ChangeMyRate.com® A Mortgage Corporation

Address: 4320 Atlantic Ave, Suite 216, Long Beach, CA, 90807

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